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Canterbury landlords warned about excessive rent rises

Canterbury landlords are being warned not to raise rents excessively due to the increased demand for rental properties after the earthquake.

Thursday, September 16th 2010, 12:00AM

by Maddy Milicich

Landlords must give tenants 60 days' written notice of intentions to raise rents and cannot make subsequent increases within 180 days of the last increase.

Department of Building and Housing client services manager Jeff Montgomery is predicting some increase in rents in Canterbury, which is to be expected when demand exceeds supply, although only for the short term.

"Rents might go up a little bit, but they will settle down. There are little bumps all the time, for example when the America's Cup was in Auckland, rents rose as a result. The same is bound to happen for the Rugby World Cup."

DBH is not expecting landlords to raise rents to an extent as to end up at the Tenancy Tribunal, as it would need to be proved that the rent being asked for was considerably outside the scope of market rent.

However, market rent can be hard to define, for example an area may have market rent for a three-bedroom house between $200 to $400 - double from one end of the scale to the other - and therefore it is difficult to prove what constitutes market rent.

"The Tenancy Tribunal is unlikely to make a ruling unless [the situation] gets way out of hand or the landlord misled the tenant in any way," Montgomery says.

Montgomery says there is currently debate around what extent a house is damaged and if that constitutes for the tenancy to end.

The law says where properties are uninhabitable, or where there is minor damage but no water, either the tenant or landlord can give notice to terminate a tenancy.

Tenants must give two days' notice, while landlords must give seven days.

If a house is partially damaged and is fixable, the tenancy will continue. If part of the dwelling needs repairs and those repairs can be done within a reasonable amount of time, the landlord must find alternative accommodation for tenants while the work is being undertaken.

But again, what constitutes reasonable in terms of time is debatable, as it changes from situation to situation.

 

 

 

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Lender Flt 1yr 2yr 3yr
AIA - Back My Build 4.94 - - -
AIA - Go Home Loans 7.49 5.79 5.49 5.59
ANZ 7.39 6.39 6.19 6.19
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.79 5.59 5.59
ASB Bank 7.39 5.79 5.49 5.59
ASB Better Homes Top Up - - - 1.00
Avanti Finance 7.90 - - -
Basecorp Finance 8.35 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.54 - - -
BNZ - Rapid Repay 7.54 - - -
BNZ - Std 7.44 5.79 5.59 5.69
BNZ - TotalMoney 7.54 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.69 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 6.95 5.79 5.59 5.69
Co-operative Bank - Standard 6.95 6.29 6.09 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 5.99 5.89 -
First Credit Union Standard 7.69 6.69 6.39 -
Heartland Bank - Online 6.99 5.49 5.39 5.45
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.60 6.65 6.40 -
ICBC 7.49 5.79 5.59 5.59
Kainga Ora ▼7.39 ▼5.79 ▼5.59 ▼5.69
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.25 ▼6.69 ▼6.49 6.49
Kiwibank - Offset 7.25 - - -
Kiwibank Special 7.25 ▼5.79 ▼5.59 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 7.94 5.75 5.99 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.49 6.95 6.29 6.29
SBS Bank Special - ▼5.89 ▼5.49 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 4.94 ▼4.89 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.19 6.49 6.39 6.39
TSB Special 7.39 5.69 5.59 5.59
Unity 7.64 5.79 5.55 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 7.70 5.95 5.75 -
Westpac 7.39 6.39 6.09 6.19
Westpac Choices Everyday 7.49 - - -
Westpac Offset 7.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 5.79 5.49 5.59
Median 7.49 5.79 5.69 5.69

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